Back
1994 Supreme(SC) 1047
SUPREME COURT OF INDIA
M.N. VENKATACHALIAH, C.J.I., S. MOHAN AND Dr. A.S. ANAND, JJ.
Union of India, Petitioners
Versus
Prince Muffakam Jah and others, Respondents.
I. A. Nos. 8-9 of 1993 in Writ Petn. (Civil) No. 1429 of 1979
Decided on 20-10-1994.
Headnote:
Constitution Of India,1950 - Article II (3) - Indian Trusts Act - Section, 74 - Claim any compensation - Appointment an Expert Committee - Petition and through Writ Petition Princess- Petitioners sought that Government of India be directed to withdraw and cancel its decision and Trustees be directed to give possession items of to highest bidder at an auction of and if necessary highest bidder be also permitted to export if was so inclined- and validity of Antiquities Act was also put in issue in writ petition- Since in meantime non-antiquities certificate issued by Director General was expiring this Court extended period of that certificate till further orders another committee was set up by Government of India to examine items - committee recommended items out those items to be acquired as art treasures on an application filed by Additional Solicitor General this Court Government to take action Antiquities Act for acquisition of some more items of in addition seven items declared as art treasures –Held, Central Government be not willing or agreeable purchase acquire items of by paying said sum just and fair price compensation till and Central Government intends to exercise its option of acquiring some of items in terms of option given to Central Government under clause Agreement Central Government shall within one month from date of order of this Court inform Trustees accordingly and Central Government will intimate Trustees particular items of which Central Government wishes to purchase Central Government appropriate authorities will give all necessary facilities to Trustees to export such items subject to existing law- All appropriate authorities concerned including Central Government Reserve Bank of India Customs and Tax authorities are accordingly so directed Central Government acquiring purchasing all or selected items out items each party will pay and bear its own costs and all costs and charges including remuneration paid to Arbitrator / Umpire and or incidental expenses of shall be borne by parties in equal shares Central Government not acquiring all of terms of Award Central Government will pay Trustees a sum only towards cost arbitration proceeding- This Order for costs is made in view of fact that Union in course of proceedings before Umpire has reiterated that Union intends to buy entire lot and reference has continued for determination of just and fair value of parting with order we would also like to clarify that in event items of all or selected items are not purchased by Central Government as per modified Award made by us rights in items of shall stand of Trustees and y shall be entitled to deal with in any manner y should choose subject however to provisions of existing law - Order accordingly
JUDGMENT
Dr. ANAND, J.:- The controversy before us revolves around the valuation of 173 items of jewellery belonging to the erstwhile Nizam of Hyderabad and held by the two Jewellery Trusts created by the Nizam. The controversy reached this Court through Writ Petn. No. 1429/79 filed by Prince Muffakam Jah and others. The circumstances under which the writ petition came to be filed need notice.
2. In July, 1972 a memorial was submitted on behalf of the Jewellery Trusts of the Nizam to the then Prime Minister of India requesting her to consider the purchase of the entire jewellery of the Nizam by the Union of India so that the jewellery could be retained in India and its value distributed to various beneficiaries under the Trusts and to discharge other liabilities of the Trusts. In August, 1973, the Ministry of Education and Social Welfare. Government of India set up an Expert Committee to assess and evaluate the items of jewellery which could be taken over by the Union of India, keeping in view the provisions of Antiquities and Art Treasures Act, 1972 (hereinafter the Antiquities Act). The Expert Committee inspected the jewellery in the presence of the Deputy Secretary, Ministry of Education and in August, 1975 the Government of India conveyed to the Trustees its intention to acquire 18 selected pieces of jewellery at a mutually negotiated price. A further inspection was conducted in December, 1975 by Government officials. In August, 1977, a decision was taken by the Government of India to set up a Gems and Jewellery Museum and another Expert Committee was constituted for making fresh selection of the jewellery. In November, 1977, the Committee inspected the jewellery and selected 41 items of jewellery and classified the same in three different grades, approximately valued at about Rs. 16 crores. In February, 1978 the Director General, Archeological Survey of India inspected the jewellery and on 22-2-1978 granted a non-antiquities certificate in respect of 65 items of jewellery out ot total of 89 items of jewellery inspected by him. Out of the remaining 24 items, the Director General declared 23 as antiquities. It appears that the Ministry of Finance sent a communication to the Trustees in March, 1978 indicating therein that the Government of India was not interested in the purchase of the jewellery and that the Trustees were free to sell the same, keeping in view the legal provisions. However, the attempt of the Trustees to sell the jewellery was halted on account of a case filed by Princess Fatima Fouzia (hereinafter the Princess). She had filed an Original Petition No. 141/78 in the Court of Chief Judge, City Civil Court for removal of the Trustees under Sec. 74 of the Indian Trusts Act and had also sought as an interim relief, to restrain the Trustees from selling the jewellery or finalisation of any tender in respect thereof. On 14-3-1978, the Chief Judge, City Civil Court passed an exparte ad interim injunction restraining the Trustees from finalising the tenders. But on 27-3-1978 after hearing both the sides the application for interim relief was dismissed. The order of dismissal was taken up in appeal by the Princess to the High Court of Andhra Pradesh. On 30-3-1978 in Civil Misc. Appeal No. 147/78 the High Court directed status quo to be maintained by the parties in respect of 37 items of jewellery. Some more proceedings took place between different beneficiaries, the Trustees and prospective purchasers but it is not necessary for us to refer to all those proceedings except to notice that when permission was granted by the High Court to one Peter Fernandez to purchase 37 items of jewellery, the order of the High Court was challenged in this Court. C. A. 1105/78 was filed by Shantivijay & Co. a prospective buyer against the order of A. P. High Court allowing the application of Peter Fernandez permitting him to purchase 37 items of jewellery for Rs.20.25 crores. The Trustees also filed C. A. 1269/78 while one Kesholal Dal
